Updated 05/02/2025
In force

Initial Legal Act
Amendments
There is currently no Level 2 legal act based on or specifying Article 41.
Implementation of NCA Discretions in the IFR
Published: 01/01/2023
Art. 41(2)
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IFR ToolInvestment Firms Regulation (IFR)
Article 41

Article 41 - Regulation 2019/2033 (IFR)

Article 41

Exclusions

1.   The following exposures shall be excluded from the requirements set out in Article 37:

(a)

exposures which are entirely deducted from an investment firm’s own funds;

(b)

exposures incurred in the ordinary course of the settlement of payment services, foreign currency transactions, securities transactions and the provision of money transmission;

(c)

exposures constituting claims against:

(i)

central governments, central banks, public sector entities, international organisations or multilateral development banks and exposures guaranteed by or attributable to such persons, where those exposures receive a 0 % risk weight under Articles 114 to 118 of Regulation (EU) No 575/2013;

(ii)

the regional governments and local authorities of countries that are members of the European Economic Area;

(iii)

central counterparties and default fund contributions to central counterparties.

2.   Competent authorities may fully or partially exempt the following exposures from the application of Article 37:

(a)

covered bonds;

(b)

exposures incurred by an investment firm to its parent undertaking, to other subsidiaries of that parent undertaking or to its own subsidiaries, insofar as those undertakings are supervised on a consolidated basis in accordance with Article 7 of this Regulation or with Regulation (EU) No 575/2013, are supervised for compliance with the group capital test in accordance with Article 8 of this Regulation, or are supervised in accordance with equivalent standards in force in a third country, and provided that the following conditions are met:

(i)

there is no current or foreseen material practical or legal impediment to the prompt transfer of capital or repayment of liabilities by the parent undertaking; and

(ii)

the risk evaluation, measurement and control procedures of the parent undertaking include the financial sector entity.